Lippo Malls Indonesia Retail Trust, or LMIR Trust, reported Monday its first quarter net property income dropped 7.8 percent on-year to S$40.51 million amid lower rental income and the continued weakening of the Indonesian rupiah.
Total gross revenue increased 34.2 percent on-year to S$49.12 million in the quarter ended 31 March as the trust took over the collection of service and utilities recovery charges from tenants, the trust said in a filing to SGX after the market close Monday.
But gross rental income fell 7.1 percent on-year in the quarter to S$37.43 million, the trust said, pointing to lower rental income from Lippo Plaza Batu and Palembang Icon on the expiry of their master leases in July 2018, and as the rupiah continued to weaken.
The distribution per unit (DPU) was 0.55 Singapore cent for the quarter, down 17.9 percent from 0.67 Singapore cent in the year-ago quarter, LMIR Trust said.
But the trust added that on a quarter-on-quarter basis, its results were showing a recovery. Net property income rose 5.5 percent on-quarter in the first quarter, it said.
“Following the gradual recovery of the Indonesian rupiah against the Singapore dollar since the beginning of this year, the trust is also showing improved quarter-on-quarter performance as we continue to actively manage and revamp our portfolio to keep up with changing consumer preferences and to generate higher organic growth,” Gouw Vi Ven, CEO of LMIRT Management, the REIT manager, said in the statement.
She pointed to efforts to improve dining options at some malls, and a refurbishment at Sun Plaza.
As of end-March, the REIT said its portfolio occupancy was at 91.5 percent, compared with an industry average of 80.7 percent.
LMIR Trust’s portfolio has 23 retail malls and seven retail spaces in other malls, the filing said.